State Law Bars Harrisburg, Pa., Bankruptcy Filing

December 6, 2011, 5:00 AM UTC

The U.S. Bankruptcy Court for the Middle District of Pennsylvania Nov. 23 dismissed the Chapter 9 bankruptcy petition filed on behalf of the state capital of Harrisburg by its city council in October, finding that the filing was prohibited under a state law enacted earlier this year. Harrisburg filed for bankruptcy protection Oct. 11, citing the magnitude of its outstanding bond debt related to a problem-plagued municipal incinerator and its inability to negotiate a solution with its creditors. Harrisburg’s mayor and three of the city council’s seven members; the county, state legislature, and governor; and the financial institutions that issued ...

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